Governments get involved in the international flow of trade and foreign direct investment and regional economic integration is also influencing international business. Identify two market entry modes, and explain how each might be affected by the actions of governments and by increasing regional integration.
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Foreign market entry modes involve ways in which a firm can expand its business operations and services into the global | PLACE YOUR ORDER NOW AT writtask.com | differ based on various aspects namely the extent of risk present, the commitment and control of resources required, and the promised return investment. At the same time, various market entry modes tend to be influenced by government actions, in addition to increasing regional integration. In this case, two notable market entry modes include exporting and | PLACE YOUR ORDER NOW AT writtask.com | might impact these two market entry modes.
In this case, the government might influence exportation by putting measures in place to ensure that internal price supports generate surplus production of goods – this is the measure that keeps the price of goods higher than the level of equilibrium (Lin & Ho, 2019). Rather than eating goods, governments tend to provide export | PLACE YOUR ORDER NOW AT writtask.com | government actions might affect licensing through issuing of permits to allow a business or firm to conduct business within a specific jurisdiction or | PLACE YOUR ORDER NOW AT writtask.com | of the government on licensing is through business legislations or policies.
Peer 1
The student identified two distinct avenues to include investment entry and contractual entries. These avenues, drawing from recent, demonstrate that various practices | PLACE YOUR ORDER NOW AT writtask.com | necessary. Contractual entry may comprise exports, imports, or countertrade, as you had identified, but it should include various factors for its implementation such as | PLACE YOUR ORDER NOW AT writtask.com | of business operation. At the same time, by doing so, the student would have effectively shown that a licensee ought to be authorized to effectively implement the investment entry path for an existing business.
Peer 2
The student considered an entry into the international | PLACE YOUR ORDER NOW AT writtask.com | as something that ought to be conducted immediately because it is a tedious process. It is accurate that by identifying two ways to include FDI and licensing as necessary in applying | PLACE YOUR ORDER NOW AT writtask.com | and intellectual property. In this case, it is evident that licensing, as explored above, is crucial in ensuring there is little involvement of the government. However, I had identified the government as an important party in realizing the set objectives of a business overseas.